Sydney, Feb 20, 2026, 16:56 AEDT — The session wrapped with the market closed.
- Commonwealth Bank finished the day 0.8% higher, closing at A$179.67 on Friday.
- Australian banks drew more interest from traders, with earnings staying solid even as hopes for rate cuts slipped away.
- Attention shifts to what the Reserve Bank signals next on policy, while CBA’s March 30 dividend payout is also on the radar.
Commonwealth Bank of Australia finished Friday’s session up 0.8% at A$179.67, lifted alongside other major banks as the sector drew support from a busy stretch of earnings. (Investing.com)
CBA, the heavyweight name on the ASX and a fixture in crowded “defensive” portfolios locally, tends to drag the index with it whenever it shifts.
The immediate issue: Will investors stick with banks, betting rates won’t come down soon? That scenario lifts lending income. But the flip side—borrowers feel the strain, bad loans start piling up.
This week’s Australian wage numbers threw more fuel on the rates debate. Wages climbed 0.8% in the December quarter, pushing annual growth to 3.4%. That’s still trailing consumer price inflation, which was clocked at 3.8% in December. Markets, according to Reuters, are now putting about a 60% probability on another Reserve Bank hike to 4.10% at the May policy meeting—this comes just after the central bank took rates up to 3.85% earlier this month. (Reuters)
Earnings season is adding fuel. National Australia Bank surged to an all-time high after reporting a 16% jump in first-quarter cash earnings. Citi analysts labeled it “a very strong headline beat,” pointing out, however, that capital stood out as “the clear negative.” NAB’s CEO Andrew Irvine maintained the bank was “well placed” for both growth and returns. (Reuters)
CBA led the pack last week, posting record first-half cash earnings along with a bump in market share for home loans, business lending, and deposits. CEO Matt Comyn told investors the economy was still “robust,” with demand outpacing supply. On the flip side, CBA’s net interest margin slipped 4 basis points to 2.04% as competition heated up. (Reuters)
There was something in it for dividend hunters, too. CBA declared an interim dividend of A$2.35 per share, fully franked, with shareholders on the books by Feb. 19 set to be paid out by March 30. No discount on the dividend reinvestment plan this time, the bank said. (CommBank)
CBA released new record and payment dates for several debt securities Wednesday, according to a notice signed off by group company secretary Vicki Clarkson. (Company Announcements)
Yet the trade is fickle. A move toward higher rates props up margins, but it also puts pressure on households and small firms, pushes arrears higher, and compels banks to ramp up their deposit hunt—pressure points that chip away at profitability.
Traders are eyeing whether rates keep firming up and if bank stocks can stay buoyant after earnings. One date on the radar: CBA’s dividend hits on March 30.
